As previously reported, Baird analyst RJ Milligan downgraded Whitestone REIT to Underperform from Neutral. Milligan cited its capital allocation strategy, which is showing a pattern of value destruction as most acquisitions over the past year have been high-risk and dilutive in year one. Milligan lowered his price target to $10 from $15 on Whitestone REIT shares.

05/18/17

MAXM

05/18/17NO CHANGETarget $20MAXMBuy

Whitestone REIT competitor downgrade 'off-base,' says Maxim

Maxim analyst Michael Diana noted that a downgrade from a competing firm raised many issues about Whitestone REIT, but he disagrees with its conclusions. The company's recent acquisition of two shopping centers in Dallas and Houston will probably be mildly dilutive in year one, but Diana expects core FFO accretion in 2018 and views Whitestone's combined stock offering/acquisitions as a long-term positive for shareholders, he stated. He believes Whitestone's senior management has done an "outstanding" job with acquisitions and reiterates his Buy rating and $20 price target on the stock. The Fly notes that Baird analyst RJ Milligan downgraded Whitestone REIT to Underperform from Neutral yesterday.

JMP Securities analyst Mitch Germain says that Whitestone has "reached a highly compelling entry point" after the company was downgraded by another firm. The analyst remains upbeat on the REIT's tenant base, which he says "tilts towards" service and defensive names. He sees "zero risk to the dividend in the near-term" and keeps a $17 price target and an Outperform rating on the stock.

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